Tesla Plans $5 Billion Battery Factory

Electric Car Maker Looking at Sites in Arizona, Nevada, New Mexico and Texas

Electric car maker Tesla Motors Inc. said on Wednesday its proposed battery "Gigafactory" would cost up to $5 billion and allow it to sell as many as 500,000 vehicles a year.

The Palo Alto, Calif., company outlined plans for a factory that would employ up to 6,500 people and cover as many as 1,000 acres, including solar and wind farms to supply its power needs. It is evaluating sites in Nevada, New Mexico, Arizona and...